Dividend payout Ratio Formula

Cash Dividend = Total amount of Dividend payments by a firm

Net income = Net income as per income statement 


The Dividend Payout Ratio (DPR) measures what a company’s payout to investors in the form of dividends.

For example, if a company paid out $1 per share in annual dividends and had $4 in EPS, the DPR would be 25%. ($1 / $4 = 25%)